Dear AK,I started following your blog about 6 months ago. I will like to seek your advice on my financial aspiration.I did purchased some stock during my early work year and most of them are below IPO price. My paper lost is around 16k and my investment sum is around 35k. Due to this experience, we are very scare to do any stock purchase. However, we try our very best to save up as much as we could since we have not much idea on investment. We have around 200k in a FD account and two 60k BOC smartsaver account.As we are both employee, we wish to be obtain financial independence by having a backup income. But we were divided on how to start the cycle. My wife prefer purchasing another property for rent while i prefer your way which is to invest in REIT as i believe with our current cash reserve we are unable to get any good property.In your opinion, which is a better way?(This is not the full email.)

Hi P,Alamak. I don't give advice. I anyhow talk to myself in my blog lah.You eavesdrop at your own risk. ;pYou have to decide for yourself what works for you and what gives you peace of mind. ;)

Dear AK,Thank for your reply.Let say if you are in my position, what will you do? I will be eavesdropping.Thank you.P

Hi P,I would do what gives me peace of mind. What gives me peace of mind would be different from what gives you peace of mind.I don't have a wife but my friends who do tell me "happy wife, happy life". ;)Best wishes,AKSometimes, it is too dangerous to be a kaypoh and AK knows it. "Honey, who told you something like this? Tell me. I kill him!"You better believe it.Related post:Buy that second residential property!

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By looking at the Reit yield spread against SG 10y government bonds versus rental yield from brick and mortar property, overall vacancy rates and overall rental rates performance will give you a better picture which offers a better margin of safety. ;)

"Whenever the topic of investments come up in Singapore, the word “property” is never too far away. Those born in the 1960s and 1970s often swear by properties, and it is hard to fault them for thinking this way given the constant and meteoric rise of property prices in Singapore in the last four decades.

"As we enter a new era where the government looks to be cooling the residential property market via several rounds of cooling measures since 2009, those still attracted to property investments should consider if they condominium are still practical or if investing in real estate investment trusts (REITs) and property developers on the stock exchange present viable opportunities.

"Property investors in the past did not have the options investors have today – to invest in a wide variety of REITs and property related stocks globally."

Wisdom to tap on.

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The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.